Ask a CPA

The cost of business intangibles such as Goodwill, covenants not to compete amounts, trademarks are amortized over a 15 year period. Most intangible assets are expected to benefit more than one year, so their cost is a capital expenditure under Internal Revenue Code section 167 (depreciation), the primary authority for deducting intangibles.

The cost of business intangibles such as Goodwill, covenants not to compete amounts, trademarks are amortized over a 15 year period.
Most intangible assets are expected to benefit more than one year, so their cost is a capital expenditure under Internal Revenue Codesection 167 (depreciation), the primary authority for deducting intangibles

Depreciation may not be claimed on personal use property such as a residence. Depreciation expenses can be claimed on a Rental property or a business vehicle.

Property includable in inventory is not depreciable. Beginning and ending and purchased inventory costs are used in your cost of goods sold calculation to determine your gross profit.

Property includable in inventory is not depreciable. Beginning and ending and purchased inventory costs are used in your cost of goods sold calculation to determine your gross profit.

You may be treated as actively participating if for example you participate in making management decisions or arrange for others to provide services. Examples of management decisions are, approving new tenants, deciding on rental terms, approving capital or repair expenditures and other similar decisions.

You may be treated as actively participating if for example you participate in making management decisions or arrange for others to provide services. Examples of management decisions are, approving new tenants, deciding on rental terms, approving capital or repair expenditures and other similar decisions.

Although you purchased a sole proprietorship for 1 amount, that amount must be allocated to the individual assets for depreciation purposes. Allocation is based on the proportion of the sales price to an individual assets fair market value at the time of the sale. Speak to your local CPA about the allocation formulas.

Although you purchased a sole proprietorship for 1 amount, that amount must be allocated to the individual assets for depreciation purposes.
Allocation is based on the proportion of the sales price to an individual assets fair market value at the time of the sale. Speak to your local CPA about the allocation formulas.

No. You may not deduct the loss you incurred on a trade in of your business equipment.